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In a remarkable display of strength, the EUR/USD pair secured substantial gains in the final week of trading, capitalizing on the weakening US dollar. It successfully surpassed all predetermined upward targets, reaching a notable high of 1.0746 after hitting the third target at 1.0720.
Analyzing the technical landscape today, a detailed examination of the 4-hour time frame chart reveals the pair’s solid stability above the crucial psychological level of 1.0700. Furthermore, it established a robust foundation above the previously breached resistance, now serving as a supportive platform at 1.0640, marking a 23.60% Fibonacci correction. Additionally, the pair finds reinforcement from the 50-day simple moving average, enhancing the likelihood of a sustained upward trajectory.
The prevailing bullish scenario remains highly probable throughout the current trading session, with an initial target set at 1.0760, corresponding to the 38.20% Fibonacci retracement. A successful breach of this level could extend the gains, potentially clearing the path for further ascension toward 1.0800 and 1.0860.
On the downside, slipping below the key level of 1.0700 might temporarily delay the upward momentum, but it does not entirely invalidate the possibility of a resurgence. However, a loss of stability below 1.0640 would halt the envisioned scenario, subjecting the pair to negative pressure and potentially leading to a retest of 1.0610 and 1.0550 before any renewed attempts at an upward move.
Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.
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